NFA poised to investigate rice over-importation

Manila (28 July) — The National Food Authority (NFA) will conduct an in depth inquiry into the reported over-importation of rice as divulged by President Benigno Aquino III in his State-of-the Nation Address on July 26, as part of government’s commitment to eliminate irregularities in the bureaucracy..

According to NFA Administrator Lito Banayo, the probe will involve a system and management audit meant to identify the problems inherited by the food agency from the previous administration.

Banayo said, he has requested Justice Secretary Leila de Lima for assistance upon the advice of National Bureau of Investigation director Magtanggol Gatdula.

“I am minded to institute a systems and management audit of my agency to ensure that both systems and personnel are functioning properly according to our mandate,” Banayo said.

Apart from the justice department and the NBI, Banayo said, he is also tapping some lawyersm financial experts and other professionals to help in the investigation.

He said, he has also asked Jesus Posadas, former vice-president for purchasing of San Miguel Corp., and a commodities expert to head the probe.

In his SONA, President Aquino said, the NFA imported 900,000 metric tons (MT) of rice in 2004, even as the shortage was estimated at only 117,000 MT while in 2007, NFA again over-imported, buying 1.627 MT to address a shortfall of only 589,000 metric tons.

The President said, the excess supply was left to rot in warehouses while the government had to deal with a debt of P171.6 billion in rice importation costs as of May 2010.

Banayo identified specific areas of concern for the probers which include overstocked warehouses; P177 billion debt as of June 30, 2010; spoilage of the imported rice and the possibility of corruption’ government inability to help the farmers; allegations of irregularities; and reports of smuggling.

The probers have also been tasked to look into the purchase and importationprotocal insofar as timing and volume are concerned; inventory system to prevent waste and spoilage of tocks; and methods and procedures of selling the stocks to ensure they are sold efficiently. (pbc/PIA)